Kotak Mahindra Bank gets CCI nod for Deutsche Bank India retail business acquisition; shares fall 1.5%
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Kotak Mahindra Bank has received approval from the Competition Commission of India (CCI) to acquire Deutsche Bank AG’s retail banking, private banking and wealth management businesses in India.
Reacting to the news, shares of Kotak Mahindra Bank declined as much as 1.55% to ₹456.80 on the BSE, taking its market capitalisation to ₹4.54 lakh crore.
In an exchange filing, the country’s fourth-largest private sector lender by asset size said the CCI had conveyed its approval through a letter dated November 3, 2026, which the bank received on the same day. The acquisition will be completed subject to the fulfilment of conditions specified in the business transfer agreement and receipt of any remaining statutory and regulatory approvals.
The proposed transaction also includes referral arrangements between the two parties through their affiliates, the CCI said in a release.
Kotak Mahindra Bank and Deutsche Bank had entered into a definitive agreement on June 30, 2026, for the transfer of Deutsche Bank’s retail banking, affluent private banking and wealth management businesses in India on a going-concern basis through a slump sale.
The proposed deal comprises approximately ₹29,000 crore in loans, ₹16,000 crore in deposits and ₹10,500 crore in assets under management. The business serves around 1.5 lakh customers through a team of approximately 1,000 employees, who are expected to join Kotak as part of the transaction.
Under the agreement, Kotak will pay a cash consideration of ₹281.7 crore, along with the amount representing assets less liabilities as of the closing date. Both components will be subject to agreed contractual adjustments.
The acquisition, including the transfer of customer relationships, employees and associated products, is expected to be completed by September 2027, subject to regulatory approvals.
Strategic fit with affluent and SME focus
The acquisition is part of Kotak Mahindra Bank’s inorganic growth strategy, which focuses on targeted opportunities to strengthen its core franchise, particularly in the affluent and small and medium enterprise (SME) segments.
“This transaction aligns well with our focus on the affluent and SME segments. It is a strong strategic fit and makes sound commercial sense. It also brings a high-quality customer franchise and experienced teams and adds incremental scale and adjacency opportunities,” said Ashok Vaswani, managing director and chief executive officer of Kotak Mahindra Bank.
The bank said its established presence in these segments, relationship-led approach and broader range of banking and investment solutions would help provide Deutsche Bank’s customers with an integrated experience following the transition.
The transaction is expected to be accretive to Kotak Mahindra Bank’s return on equity (ROE) and Deutsche Bank’s Common Equity Tier 1 (CET1) capital ratio, according to the joint statement issued by the lenders.
For Deutsche Bank, the sale is part of its global Hausbank strategy, which involves simplifying its business and concentrating on areas where it has scale and competitive strengths.
Deutsche Bank will retain its corporate banking, investment banking and global capability centre (GCC) businesses in India. Its Private Bank will continue to focus on global ultra-high-net-worth clients, including non-resident Indians, outside India.